Enacted in 1980, the Bayh-Dole
Act (PL 96-517, Patent and Trademark Act Amendments of 1980)
created a uniform policy for federal granting agencies to follow in handling inventions based on federally funded research programs. The Bayh-Dole
Act was instrumental in encouraging universities to
participate in technology transfer activities.

Major provisions of the
Act include:

Non-profits, including universities, and small businesses may elect
to retain title to innovations developed under federally funded research
programs.

Universities are encouraged to collaborate with commercial concerns
to promote the utilization of inventions arising from federal
funding.

Universities are expected to file patents on inventions they elect to own.

Universities are expected to give licensing preference to small
businesses.

The government retains a non-exclusive license to practice the
patent throughout the world.